«The worry» on the spread «I only see it in the desires of those who imagine that a democratically elected government that has a strong majority and that is solid and is doing its job should go home to be replaced by a government that no one chose». The Prime Minister says it, Giorgia Meloni, on the sidelines of the Med9 works in Malta. «The spread is decreasing, evidently investors have read the Nadef – added Meloni.
“Italy is solid and growing more than France and Germany,” continued the prime minister. As for the hypotheses of technical government, «The names of the ministers of the caretaker government are already being mentioned, it makes me smile. I fear that this hope will not come true,” she concluded.
Pd: Meloni is paranoid about the caretaker government
«Instead of locking themselves in the bunker in the grip of technical government paranoia, Giorgia Meloni and her loyalists would do better to use their time for the budget maneuver. If a good day begins in the morning (Nadef), the prospects are decidedly disheartening: the economy has stopped and the right hasn’t the faintest idea of how to relaunch it.” Senator Antonio Misiani, economic manager of the Democratic Party, wrote this in a tweet.
Bonomi: debt and public spending are worrying
Given the huge public debt, «the spread worries us a lot. I saw that Minister Giorgetti said that the increase in the differential alone this year will burn 15 billion. It’s a financial maneuver. I believe that the path taken by the ECB was wrong. Raising rates alone is not the only way to combat imported inflation. Indeed, the risk is recession. It was necessary to balance the increase in rates, as happened in the United States, with other stimuli.” Carlo Bonomi, president of Confindustria, says this in an interview with La Repubblica. «It would also be important to exclude certain investments from the Stability Pact. Here investments have collapsed from 3.5% in the first quarter of 2021 to 0.8% in the last quarters »he adds. In Italy «we need to seriously review current spending – he explains – there are over 1,100 billion a year: can we save somewhere? Frankly, the two billion cuts envisaged are few.” In general «there is a slowdown in world trade. But, of course, Germany is slowing down significantly. And it is our first trading partner, in 2022 trade reached 168 billion euros. We are a transformation economy, based on exports, and in the presence of asphyxiated internal demand, Germany has always guaranteed us good economic performance. In short, we can never rejoice if the Germans do badly.” According to Bonomi there is a «loss of European politics and it seems to me that after the pandemic period Europe has lost that cooperative spirit. And we are faced with great transformations, enormous challenges.” In Europe «we need to create mutual funds. If environmental sustainability is a common European good, all countries must invest with the same possibilities, otherwise we will split the single market.”
The BTP-Bund spread showed little change at 193.5 points, with the yield falling
The BTP-Bund spread rises and closes the last session of the week little changed at 193.5 basis points from 193 the day before when it fell again at the end after flying to the threshold of 200 points. Compared to Thursday, the yield on the Italian 10-year bond fell slightly to 4.77% (from 4.85%). He moved in line with the lowering of tension on government bonds and not only in Italy. American and European government bonds saw yields fall after the reassuring signals on inflation in the Eurozone and on that measured by the PCE index in the USA which could push the ECB and Fed to take a more moderate stance on rates.